Less income inequality and more growth - Are they compatible?

Can both less income inequality and more growth be achieved? A recent OECD study sheds new light on the link between policies that boost growth and the distribution of income. It suggests that there are win-win policy options: raising human capital is key, various labour market reforms can help and taxation can be made more equitable and growth friendly. But there are also reforms that lead to a trade-off between growth and equity.

For each individual country, the country profile assembles three sets of indicators which are considered as most relevant and for which data are available for a majority of countries. The first set presents indicators on inequality outcomes, from individual labour earnings to household disposable income adjusted for in-kind public spending. The second set presents indicators on policies affecting labour income inequality. The third set presents tax and transfer policy indicators. Information on the definition of these indicators is available here.